- Tata Chemicals standalone H1 FY07 revenues up 24 per cent at Rs 1,881 cr, H1 FY07 PAT up 22 per cent at Rs 233 cr, Basic EPS (for the period): Rs 10.83
- Tata Chemicals consolidated H1 FY07 revenues up 86 per cent at Rs 2,805 cr, H1 FY07 PAT up 43 per cent at Rs 274 cr , Basic EPS (for the period): Rs. 12.74
- Higher realisations, improved sales volumes drive growth
- Magadi, Kenya expanded capacity to become operational by December
- Demand environment continues to show strength
Tata Chemicals Limited, a leading manufacturer of chemicals, fertilisers and food additives today announced its audited financial results for the quarter and half year ended September 30, 2006. The Company is the third largest manufacturer of soda ash and sodium bicarbonate in the world, apart from being the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the most efficient manufacturer of urea in the country.
Commenting on the Company's performance for Q2 and H1 FY2007, Homi Khusrokhan, Managing Director, Tata Chemicals, said,
"I am happy to report strong operating and financial performance for the quarter and half year under review. We have seen a strong improvement in our sales realizations driven by healthy sales volumes across all our products. The integration of Brunner Mond with Tata Chemicals is progressing smoothly. The expansion of our low cost natural soda ash manufacturing facility at Magadi will be completed by the end of this calendar year and this will give us greater operating efficiencies. We are also modernizing our domestic inorganic chemicals plant in Mithapur. I believe Tata Chemicals is well positioned to deliver sustained growth going forward."
The Company's standalone H1 FY07 income from operations (net of excise) was higher by 24 per cent at Rs. 1,881 crore from Rs. 1,506 crore. Q2 FY07 income from operations (net of excise) were higher by 13 per cent at Rs 1,126 crore. This increase has been driven by significantly higher sales realizations and healthy sales volumes especially from the Company's higher value products.
H1 FY07 Profit from Operations grew by 15 per cent to Rs. 356 crore on the back of improved efficiencies and lower input costs.
Net Profit after Tax for the half year ended September 30, 2006 increased 23 per cent to Rs. 233 crore translating to a Basic EPS (for the period) for the Standalone entity of Rs 10.83.
On a consolidated basis H1 FY07 net income from operations stood at Rs 2,805 crore, up 86 per cent while PAT amounted to Rs 233 crore, an increase of 43 per cent. Basic EPS (For the period) stood at Rs.12.74
Note: Consolidated financials indicated in this communication are unaudited and primarily include those of the Brunner Mond Group acquired in December 2005 and the one third stake acquisition in Indo Maroc Phosphore S.A. (IMACID)
The standalone financials have been subjected to auditors' limited review as per Indian reporting practices
Segmental performance
A. Chemicals
Soda ash
- Tata Chemicals maintained its dominance in the Indian soda ash market with an overall domestic marketshare (including imports) of 32.6 per cent for the last six months under review as compared with 31.3 per cent for the same period last year.
- Modernisation and expansion of the Mithapur inorganic chemicals manufacturing facility is in progress. The programme is focused on enhancing efficiencies and increasing capacities across all products
Food additives
- Tata Chemicals maintained leadership in the domestic edible salt market with a marketshare of 47 per cent in the national branded segment and 18.2 per cent in the overall Iodized packaged segment in August 2006
- A Solar-refined Free Flow Iodized Salt 'I-Shakti' was successfully launched in the South in the last week of September 2006.
B. Fertilisers
Nitrogenous (Urea)
- Sales volumes were healthy on the back of strong though delayed and uneven monsoon
- Production volumes for the quarter were lower as a result of unavailability of natural gas mainly due to floods in Gujarat
Phosphatics (NPK, SSP, DAP)
- DAP, NPK and complex fertiliser sales volumes were healthy during the quarter
Brunner Mond Overview
- Integration process in Brunner Mond is proceeding as scheduled. Tata Chemicals has appointed some key personnel on deputation at Brunner Mond facilities
- The natural soda ash capacity expansion project at Magadi is expected to be commissioned by December 2006
Financial management
- Interest costs stood at 5.2 per cent for the quarter and half year under review
- Total debt as on September 30, 2006 stood at Rs 1,374 crore. Debt largely comprises low cost short term buyers credit for the phosphatics business and the Foreign Currency Commercial borrowing raised in January 2005
Note: Some of the statements in this document that are not historical facts are forward looking statements. These statements are based on the present international and domestic business environment and regulatory framework. We assume no responsibility for any action taken based on the said information, or to update the same as circumstances change.